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Question 43 Chapter 5 of +2-Part-1
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43. (Goodwill is not brought in Cash) The following was the balance sheet of Ajay, Vijay and Kamal as on 31-3-2018:
| Liabilities | Rs | Assets | Rs | |
| Creditors | 11,000 | Land & buildings | 50,000 | |
| Bills Payable | 6,000 | Furniture | 7,500 | |
| Capital Accounts | Stock | 30,000 | ||
| Ajay | 40,000 | Debtors | 26,500 | |
| Vijay | 33,500 | Cash | 1,500 | |
| Kamal | 25,000 | 98,500 | ||
| 1,15,500 | 1,15,500 |
They share profits and losses in the ratio of 6: 5: 3. On 1-4-2015 they agreed to admit Subodh into partnership and give him a share of 10 paise in the rupee on the following terms:
(i) That Subodh should bring in Rs. 14,840 as capital.
(ii) That stock is depreciated by 10% and furniture by Rs. 900.
(iii) That a reserve of Rs. 1,300 be made for the outstanding repair bills.
(iv) That the value of land and buildings be brought up to Rs. 65,000. (v) That Subodh does not contribute anything for goodwill which was valued Rs. 8,400 for the firm.
Pass necessary journal entries to record the above arrangements and prepare the new Balance Sheet of the firm.
2. Check out the Solution of this question in Article Format:-
We are providing a solution of Question 43 Chapter 5 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:
1. Check out the Solution of this question in Video Format:-
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The video consists solution of question numbers from 42 to 44 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 43 from the flowing video by using time stamps of the video.
The solution of Question 43 Chapter 5 of +2 Part-1: –
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 1) | Cash A/c | Dr. | 14,840 | ||
| To Subodh’s Capital A/c | 14,840 | ||||
| (Being capital brought by new partner) | |||||
| 2) | Revaluation A/c | Dr. | 5,200 | ||
| To Revaluation A/c | 3,000 | ||||
| To Furniture A/c | 900 | ||||
| To outstanding repairs A/c | 1,300 | ||||
| (Being assets and liabilities revalued) | |||||
| 3) | Land & building A/c | Dr. | 15,000 | ||
| To Revaluation A/c | 15,000 | ||||
| (Being assets revalued) | |||||
| 4) | Revaluation A/c | Dr. | 9,800 | ||
| To Ajay’s Capital A/c | 4,200 | ||||
| To Vijay’s Capital A/c | 3,500 | ||||
| To Kamal’s Capital A/c | 2,100 | ||||
| (Being commission due) | |||||
| 5) | Subodh’s Current A/c | Dr. | 840 | ||
| To Ajay’s Capital A/c | 360 | ||||
| To Vijay’s Capital A/c | 300 | ||||
| To Kamal’s Capital A/c | 180 | ||||
| (Being new partner’s share in goodwill adjusted in Sacrifice ratio 6:5:3) |
|||||
| Revaluation Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| To Stock A/c | 3,000 | By Land & Buildings A/c | 15,000 | ||
| To Furniture A/c | 900 | ||||
| To O/S Repairs A/c | 1,300 | ||||
| To Profit on revaluation transferred to Capital accounts | |||||
| – Ajay’ capital A/c | 4,200 | ||||
| – Vijay capital A/c | 3,500 | ||||
| -Kamal capital A/c | 2,100 | 9,800 | |||
| 15,000 | 15,000 | ||||
| Partners’ Capital Account |
|||||||||
| Particulars | Ajay | Vijay | Kamal | Subodh | Particulars | Ajay | Vijay | Kamal | Subodh |
| By Balance b/d | 40,000 | 33,500 | 25,000 | ||||||
| By Revaluation A/c | 4,200 | 3,500 | 2,100 | ||||||
| By Bank A/c | – | – | 14,840 | ||||||
| By Subodh’s Current A/c |
360 | 360 | 360 | ||||||
| To Balance c/d | 45,560 | 37,300 | 27,280 | 14.840 | |||||
| 45,560 | 37,300 | 27,280 | 14,840 | 45,560 | 37,300 | 27,280 | 14,840 | ||
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| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Creditors | 11,000 | Land & buildings | 65,000 | ||
| Bills Payable | 6,000 | Furniture | 6,600 | ||
| Outstanding repair expenses | 1,300 | Subodh’s current A/c | 840 | ||
| Capital Accounts | Stock | 27,000 | |||
| Ajay | 44,560 | Debtors | 26,500 | ||
| Vijay | 37,300 | Cash(1500+14,840) | 16,340 | ||
| Kamal | 27,280 | ||||
| Subodh | 14,840 | 1,23,980 | |||
| 1,42,280 | 1,42,280 | ||||
Working Notes :
| Total goodwill of the firm | = | Rs 8,400 | ||
| Total Sales | = | 1 | X | 8,400 |
| 10 | ||||
| = | 840 Not brought in cash |
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
